Factories Act - Contract Labour Law Legislations Applicable? - CiteHR
Madhu.T.K
Industrial Relations And Labour Laws
Boss2966
Industrial Relations
Kishorkulkarni
Law Practice
DilipSN
Labour Law Consulting & Outsourcing
+2 Others

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Dear seniors,
Factory under construction stages as well as more than 70 construction employee work for the purpose Build Factories ,which employee is contract labour , My question is what are the Labour Law Legislations is applicable on stage to principal of employer
Regards
Hekarthik
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So long as the factory building is under construction and till production commences, no labour law will apply to the employer. However, the Building and other Construction Workers (Regulation of Employment and Conditions of Service Act), 1996 which tells about health, safety and welfare of the construction workers and Building and Other Construction Workers Welfare Cess Act, 1996, which tells about payment of a certain amount by way of cess based on the value of building constructed are to be followed.
Madhu.T.K
The Cess is to be paid by the occupier/employer/ the person for whom the construction is taken place. It applies to such constructions the cost of which is above 10 lakhs and the cess is 1% of cost of construction.
Madhu.T.K
I do not agree with Mr. Madhu that only Building and other Construction Workers (Regulation of Employment and Conditions of Service Act), 1996 act is applicable.
In addition to that, Contract workers (R and R) Act and more over the important Employees Compensation act is also applicable.
Dear Kishor Kulkarni
As a matter of fact Madhu TK was conveying that after obtaining the approval for construction of factories, the Factory Act will not be applicable. Instead of that he wrote as Labour Law. He is one of our guide for Labour Law and wherever we struck up in our work, we seek guidance from him as he is expert in Labour Law.
BOCW Act & Rules, CL (R&A) Act & Rules, Employee Compensation Act & Rules, ID Act and Rules, PW Act, MW Act, PG Act, Payment of Bonus Act and if we engage other state workers then ISMW Act & Rules are also applicable while construction work is in progress.
If the construction work is carried out inside the existing factory premises, then the BOCW Act will not be applicable and the Factories Act only will be applicable.
I would like to clarify that as an "employer" application of labour laws comes only after commencement of business. At the same time, the BCW Act by itself provides for application of Workmen's Compensation and other safety, health and welfare measures to be followed by the employer. Therefore, the matter of ensuring social security is already there, I have not completely left it.
Madhu.T.K
If we look to the query put by Mr. Hekarthik in his post that "when a factory is under construction what are the Labour Law Legislation applicable on stage to "principal of employer". In that context, what laws are applicable and what are not as a Principle Employer were necessary to be explained.
I tried to add what was missing in the list.
To,
Dear Mr. Madhu.T.K,
Super Moderator,
and
Dear Mr. S. Bhaskar
Super Moderator,
Many greetings of Season.
Today I have had the posts of you both and I feel really fortunate to interact with you through this forum and will always be glad to share the views. Please do forgive me if any thing offending from my end through my posts.
With warm Regards,
Adv. K. H. Kulkarni.
Hello Mr. Hekarthik,
As a principal employer has to be Registered under Contract Labour Act/state Rules as well as Building and Other Construction Workers Act. Principal Employer and Contractors should be Registered under BOCW Act. All construction workers has to be registered as beneficiary under Janshri Insurnace Scheme beared by Rajya Building & Construction Workers Welfare Board by the all Contractors.
And all labour laws are applicable to contractors and principal employer like Minimum Wages Act, Payment of Wages Act, Professional Tax Act, Labour Welfare Fund Act, Workmen Compensation Act etc.
Regards,
Dilip Nandanwar
For Vidarbha Industries
(Labour Law Auditing, Consulting, Payroll Outsourcing & Mgmt, Manpower/Staffing and Contracting)
Navi Mumbai
Branch Office - Nagpur
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Query to Mr.Madhu
Since you have mentioned that the Cess has to be paid only by occupier/employer/ the person for whom the construction is taken place( where in the factory have not yet started yet but under construction ) ,does it mean that the contractor who employs the workers are not required to come under cess applicability since he is neither the occupier , employeror the person for whom the construction takes place or he still would have to since he as contractor is the employer of these workers ..?
regards
Babu.
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